Australian regulator bans ex-director of Spectrum Wealth Advisers for six years
ASIC has banned Mark Schroeder from providing financial services for six years due to his role in numerous compliance failures by Spectrum.
The Australian Securities & Investments Commission (ASIC) has imposed a six-year ban from the financial services industry on Mark Schroeder, a former director, chief executive officer, responsible manager and a key person for Spectrum Wealth Advisers Pty Ltd.
The ban is imposed due to Mr Schroeder’s his role in numerous compliance failures by Spectrum. ASIC found that Mr Schroeder, as the most senior manager at Spectrum and the person primarily responsible for its activities and day-to-day management, was involved in Spectrum’s contraventions of financial services laws.
The regulator also believes that Mr Schroeder is likely to contravene a financial services law in the future because of his involvement and responsibility for Spectrum’s failures and because of his poor understanding of the obligations of providers of financial services, particularly regarding compliance matters.
Let’s recall that ASIC’s surveillance identified serious concerns about Spectrum’s compliance with its obligations as an Australian financial services (AFS) licensee, and that it failed to do all things necessary to ensure that financial services were provided efficiently, honestly and fairly.
According to the regulator, Spectrum did not take reasonable steps to ensure its representatives complied with the law. The licensee failed to audit its representatives regularly and ensure that its representatives were adequately trained and competent.
Spectrum also did not have sufficient human and technological resources to meet its licence obligations.
According to a recent update issued by the regulator, Spectrum is seeking to cancel its licence and is no longer providing financial services.
In particular, shortly after being issued with a notice of hearing, Spectrum ceased trading and its parent company, Freedom Insurance Group, applied to ASIC to cancel Spectrum’s AFS licence.
Mr Schroeder’s banning has been recorded on ASIC’s publicly available Banned and Disqualified Persons Register. He continues to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.